Insurer renews policy despite Chinese drywall
WEST PALM BEACH (AP) – Florida’s public insurance company reversed course this week and said it will cover a couple’s Gulf Coast retirement home, after previously telling the homeowners their policy wouldn’t be renewed because of the home’s tainted Chinese drywall.
Citizens Property Insurance Corp., a state-backed insurer of last resort, told The Associated Press for an Oct. 15 story that it generally couldn’t continue to cover homes with such defective materials because of a “pollution” exclusion in policies.
Citizens previously said it considered the drywall a pre-existing condition, leading to pollution that could cause future damage, something not covered under most policies nationwide. That’s why the insurer said it had earlier issued a notice of non-renewal to James and Maria Ivory.
Following reports by media groups including AP, the company asked to perform a second home inspection last week. It told the couple on Thursday it reversed its decision and would continue the policy at least into 2011.